Overview

• The PRA and FCA published final remuneration rules that take effect on October 16 for 2025 pay awards and any awards not yet fully paid.
• The deferral period for senior bankers is halved from eight years to four years.
• Most senior staff can receive a portion of bonuses in the first year rather than waiting until year three.
• Restrictions on the proportion of bonuses that must be deferred are lifted, giving firms more flexibility to pay a greater cash share up front.
• Officials say the changes align the UK with other major markets, cut complexity by 70%, retain powers to reduce or cancel deferred awards, and could ease pressure on base salaries.